Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[GM forgoes $2 billion in federal loans it doesn't need]]>http://www.autoblog.com/2009/03/12/gm-foregoes-2-billion-in-federal-loans-it-doesnt-need/http://www.autoblog.com/2009/03/12/gm-foregoes-2-billion-in-federal-loans-it-doesnt-need/http://www.autoblog.com/2009/03/12/gm-foregoes-2-billion-in-federal-loans-it-doesnt-need/#commentsFiled under: ,



General Motors announced today that it's taking a pass on $2 billion in loans that were previously requested last year for the month of March. The automaker cites "company-wide cost reduction efforts as well as pro-active deferrals of spending previously anticipated in January and February" as the reasons for why it's withdrawing the request for money. GM advised the President's Task Force on the Auto Industry of the development this week and revealed the news today at the bottom of a press release containing its statement on the Canadian Auto Workers union ratifying a new contract with concessions. The low key announcement is strange considering the good light in which the automaker will likely be cast for not taking money from the government that isn't needed. Ford, which was the only domestic automaker not to request government aid, has been enjoying that spot light for months.

We're not sure exactly how this affects GM's overall request for government aid, as the automaker revealed to the Treasury Department in its Viability Plan submitted on February 17th that it may need up to $16.6 billion more from the federal government in addition to the $13.4 billion that's already been approved. Though GM's decision to forego $2 billion for the month of March doesn't necessarily signal that the company is healthy and ready to go it alone, its demonstration of successful cost cutting and responsible spending will likely help ensure that the rest of the aid it requested is more easily approved.

[Source: General Motors]

Continue reading GM forgoes $2 billion in federal loans it doesn't need

GM forgoes $2 billion in federal loans it doesn't need originally appeared on Autoblog on Thu, 12 Mar 2009 13:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>federal loansFederalLoansgeneral motorsGeneralMotorsgmgm 2 billiongm two billionGm2BillionGmTwoBilliongovernment aidGovernmentAidThu, 12 Mar 2009 13:58:00 EST<![CDATA[VIDEO: Chrysler breaks out the Handycam, makes case for federal aid]]>http://www.autoblog.com/2008/11/15/video-chrysler-breaks-out-the-handycam-makes-case-for-federal/http://www.autoblog.com/2008/11/15/video-chrysler-breaks-out-the-handycam-makes-case-for-federal/http://www.autoblog.com/2008/11/15/video-chrysler-breaks-out-the-handycam-makes-case-for-federal/#commentsFiled under: , ,



Now that the domestic industry is in dire need of cash, the American taxpayer is being bombarded with facts and figures purporting to show just how vital the industry is for the health of the overall economy. Hundreds of thousands of jobs at the automakers, millions more from suppliers and dealers -- the numbers seem to change each time, but they're always substantial. Problem is, it seems only GM and Ford ever get quoted, so Chrysler went ahead and whipped up its own little video. Hit the jump to view Chrysler's 2:42 docudrama filled with still more numbers touting the industry's importance. For example, active Ford, GM, and Chrysler employees make $22 billion per year in salaries, and the three companies pay $21 billion in retirement and health care costs. Chrysler also states that the amount of people whose wages depend on autos either directly or indirectly are equal to the population of South Carolina.

[Source: YouTube]

Continue reading VIDEO: Chrysler breaks out the Handycam, makes case for federal aid

VIDEO: Chrysler breaks out the Handycam, makes case for federal aid originally appeared on Autoblog on Sat, 15 Nov 2008 12:25:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslercredit crunchCreditCrunchdetroit 3Detroit3federal loansFederalLoansSat, 15 Nov 2008 12:25:00 EST<![CDATA[Ralph Nader opposes $50 billion loan from feds]]>http://www.autoblog.com/2008/09/08/ralph-nader-opposes-50-billion-loan-from-feds/http://www.autoblog.com/2008/09/08/ralph-nader-opposes-50-billion-loan-from-feds/http://www.autoblog.com/2008/09/08/ralph-nader-opposes-50-billion-loan-from-feds/#commentsFiled under: , , ,



The Detroit 3 are pushing hard for $50 billion in low interest loans to keep factories running, build new ones and create alternative powertrains. Presidential candidate Barak Obama has already endorsed $50 billion in loans and Republican nominee John McCain has signed on for $25 billion in loans already guaranteed in the 2007 energy bill. If Ralph Nader were elected to office (won't happen), he would be against such a loan. Nader told a group of supporters in the Detroit area that "tax payers should not be played for a sucker," and that decades of bad decisions by automakers means that no such government assistance is deserved.

GM spokesman Greg Martin countered that Nader was basically a non-entity in the big picture, pointing out that the loan would help quickly get more fuel efficient vehicles on the road. U.S. Rep. Joe Knollenberg from Michigan remarked that Detroit automakers could be paying 15-20% in interest rates without the government loan, which would be pegged at 4-5%. We're not experts on the subject, but we're pretty sure a loan with a 20% interest rate is a bad idea, and it's not the kind of rate you want to pay if you're competing against Toyota.

[Source: The Detroit News, Photo by Alex Wong/Getty]

Ralph Nader opposes $50 billion loan from feds originally appeared on Autoblog on Mon, 08 Sep 2008 14:04:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslerdetroit automakersDetroitAutomakersfederal loansFederalLoansfordgmMon, 08 Sep 2008 14:04:00 EST<![CDATA[Detroit automakers to lobby Congress for $50 billion in loans]]>http://www.autoblog.com/2008/09/08/detroit-automakers-to-lobby-congress-for-50-billion-in-loans/http://www.autoblog.com/2008/09/08/detroit-automakers-to-lobby-congress-for-50-billion-in-loans/http://www.autoblog.com/2008/09/08/detroit-automakers-to-lobby-congress-for-50-billion-in-loans/#commentsFiled under:



What's another $25 billion between friends? That's the argument General Motors, Chrysler and Ford's Congressional lobbyists will be making in the next few months for a $50 billion loan from the federal government.

Originally, Detroit's Big Three were after $25 billion in loans from the Feds, but after lawmakers authorized a loan in last year's energy bill, the domestics now want Congress to grant loans up to $50 billion over the next three years.

The loans would carry an interest rate of around four to five percent, with $25 billion being available in the first year, another $15 billion in the second year and the final $10 billion in the third.

GM, Ford and Chrysler contend that the low-interest loans would be used to build more fuel-efficient vehicles, including hybrids and electrics, thus reducing the U.S.'s dependency on foreign oil, not to mention making all three automakers more competitive in a market that no longer favors big trucks and SUVs.

Mark Fields, Ford's President of the Americas, likens the bailout loan to the recent financial support granted to Bears Stearns, Fannie Mae and Freddie Mac from the Feds, saying, "This is not about benefiting Wall Street. This is benefiting Main Street, the working men and women."

[Source: Detroit News]

Detroit automakers to lobby Congress for $50 billion in loans originally appeared on Autoblog on Mon, 08 Sep 2008 08:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslerfederalfederal loansFederalLoansfordgeneral motorsGeneralMotorsgmloansMon, 08 Sep 2008 08:32:00 EST